GM Pension Monster

Recently a retired GM worker sent in a comment to the Toronto Sun indicating that he blamed the Government for the GM pension problem and thus wanted the government to make good on his pension entitlements. The link posted will take you to his column and beneath it is the reply I forwarded to the Sun. I'm not sure it will get published so I have reprinted it on this site.

http://www.torontosun.com/comment/2009/05/14/9451761-sun.html

Response:

While I sincerely feel empathy for Mr. Graham’s plight I believe there are other facts that need to be examined before deciding to support his quest for Government guarantees for his pension. First the Government in power that enacted this legislation in “92” happened to be Bob Rae and the NDP socialists. They not only made this risky move but actually made a mess of the entire economy while sitting at Queen’s Park. These are the same guys that the powerful unions like the CAW support time and time again. This change in pension funding was not done with any fanfare but you can rest assured the unions were aware and therefore by remaining silent they definitely sanctioned the act. While Mr. Graham was a salaried employee he still reaped tons of benefits from the CAW/GM labour contracts for as we, the people that worked in the private sector know, much of what is gained by the unions during contract negotiations is automatically given to the salaried folks as well. Secondly, the RRSP limit is definitely a negative factor but my question is this “If you would have had room under the RRSP plan would you have put money into it?” If not then your point is moot, but if you would have done so then where did this money go? Could it not have been saved or put into other retirement funds or the equity market as a backup to your pension? This is called a diversified portfolio or sound financial planning. Third, when the government of the day passes any legislation that eventually affects most citizens I have yet to see a case where the adversely affected people get to have the current government of the day make them whole. Last but not least is this socialist mentality that the Government is the cradle to grave caretaker of its citizens of which Mr. Graham has apparently adopted. The government has no money! All it does is take it from someone else to give it to you! Why should I or my grandchildren pay for your mistakes?